Investment Policy Statement

Objectives

  • Give time for existing investments to grow, while covering expenses with part-time self employment income
  • To save enough to scale back work significantly by the age of 45 (~$20-25k/year in income from investments)

Risk Tolerance

I have a high risk tolerance. Due to my goal of financial independence at an early age I can easily weather economic downturns that may come along. I also have the flexibility to alter my goals and savings rate based on actual performance, without negative repercussions.

Allocations

  • Large-Cap U.S. Equity Funds – 35%
  • Mid-Cap U.S. Equity Funds – 15%
  • Foreign Equity Funds – 20%
  • REIT Funds & Physical Real Estate – 10%
  • Bond Funds – 10%
  • Non-traditional Investments – 5%
  • Cash – 5%

Selection Criteria

  • Fund expense ratios (low)
  • Tax efficiency (optimized)

Other Notes

  • Will not attempt to time the market
  • Re-balancing will be attempted every 6 months, and may use the technique of changing future automatic investment allocations to gradually meet allocation goals